GALVESTON Ã¯Â¿Â½ Bond Safeguard Insurance Co. claims Rebound Resources and Timothy and Dawn Rice failed to indemnify it, recent court documents say.
A lawsuit filed March 9 in Galveston County District Court argues that Bond Safeguard has been obligated to pay losses of $50,000 as a result of a claim made by the Railroad Commission of Texas under the bond, stating the Rices owe $25,000.
Rebound Resources and the insurer entered into an agreement in which the plaintiff provided the defendants a blanket performance bond. The Rices executed an indemnity agreement, guaranteeing payment in the event Rebound caused the complainant to incur liability, the suit says.
It adds the defendants also provided an irrevocable letter of credit for the amount of $25,000 as collateral.
"The Texas Railroad Commission made a claim against the bond, which claim the surety paid," the original petition says.
"The surety has demanded payment from the indemnitors under the agreement to cover the liabilities under the bond. To date, the indemnitors have failed and refused to provide any security or collateral."
The suit insists that the complainant has fully complied with the agreement.
Coats, Rose, Yale, Ryman & Lee, P.C. is representing the plaintiff, and Galveston County 122nd District Court Judge John Ellisor is presiding over the case.
Case No. 11-cv-0433